It May Be Possible That Chatham Rock Phosphate Limited's (NZSE:CRP) CEO Compensation Could Get Bumped Up

Shareholders will probably not be disappointed by the robust results at Chatham Rock Phosphate Limited (NZSE:CRP) recently and they will be keeping this in mind as they go into the AGM on 17 November 2022. The focus will probably be on the future strategic initiatives that the board and management will put in place to improve the business rather than executive remuneration when they cast their votes on company resolutions. We have prepared some analysis below and we show why we think CEO compensation looks decent with even the possibility for a raise.

Check out the opportunities and risks within the XX Chemicals industry.

How Does Total Compensation For Chris Castle Compare With Other Companies In The Industry?

According to our data, Chatham Rock Phosphate Limited has a market capitalization of NZ$21m, and paid its CEO total annual compensation worth CA$84k over the year to March 2022. Notably, that's an increase of 32% over the year before. In particular, the salary of CA$62.9k, makes up a huge portion of the total compensation being paid to the CEO.

For comparison, other companies in the industry with market capitalizations below NZ$339m, reported a median total CEO compensation of CA$299k. This suggests that Chris Castle is paid below the industry median. Moreover, Chris Castle also holds NZ$233k worth of Chatham Rock Phosphate stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2022	2021	Proportion (2022)
Salary	CA$63k	CA$64k	75%
Other	CA$21k	-	25%
Total Compensation	CA$84k	CA$64k	100%

On an industry level, roughly 60% of total compensation represents salary and 40% is other remuneration. Chatham Rock Phosphate is paying a higher share of its remuneration through a salary in comparison to the overall industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

Chatham Rock Phosphate Limited's Growth

Over the past three years, Chatham Rock Phosphate Limited has seen its earnings per share (EPS) grow by 30% per year. In the last year, its revenue is down 17%.

This demonstrates that the company has been improving recently and is good news for the shareholders. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Chatham Rock Phosphate Limited Been A Good Investment?

Chatham Rock Phosphate Limited has served shareholders reasonably well, with a total return of 17% over three years. But they would probably prefer not to see CEO compensation far in excess of the median.

To Conclude...

The company's overall performance, while not bad, could be better. Assuming the business continues to grow at a good clip, few shareholders would raise any objections to the CEO's remuneration. Instead, investors might be more interested in discussions that would help manage their longer-term growth expectations such as company business strategies and future growth potential.

CEO pay is simply one of the many factors that need to be considered while examining business performance. We did our research and identified 4 warning signs (and 2 which are potentially serious) in Chatham Rock Phosphate we think you should know about.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.